New York proposes a 0.2% tax on crypto transactions, expecting to raise $158 million/year

State Assemblyman #Newyork , Phil Steck, has just introduced bill A0966 to impose a 0.2% excise tax on all cryptocurrency transactions in the state. He estimates that the tax will generate approximately $158 million/year, based on data from Chainalysis (2022–2023) and New York's GDP share.

According to Steck, the revenue will be used to support programs to combat substance abuse in schools in Upstate New York, where the opioid epidemic has ravaged communities for many years. He currently serves as the Chairman of the Standing Committee on Alcoholism and Drug Abuse, an agency that oversees services supporting more than 730,000 people each year.

The scope of the bill is quite broad, including NFTs, stablecoins, digital assets from mining and staking. If passed, this would be a new direct tax in addition to existing obligations such as capital gains tax, gift tax, and inheritance tax that New York has imposed on crypto.

Steck also emphasized the risks following the collapse of FTX in 2022, along with several lawsuits related to Gemini and Genesis, arguing that the crypto industry is still "prone to fraud and scams." Additionally, he warned about the environmental impact from Bitcoin mining activities.

With New York – a global financial center and home to many major crypto companies like Circle, Gemini, Galaxy Digital – if this bill becomes law, the impact on the market will be significant. #anhbacong